STP Investment Services, which Supports $340B in Assets, Acquires Fund Administrator, Tower Fund Services

STP Investment Services, an international, end-to-end investment operations service provider that supports over $340 billion in total assets, has reportedly acquired third-party fund administrator Tower Fund Services.

The acquisition deal substantially increases STP’s alternative fund administration value proposition for its clients, “while simultaneously delivering Tower clients an enhanced service experience and future-ready financial technology,” according to a release.

Based in Oceanport, New Jersey, Tower offers an outsourced solution for alternative investment managers and family offices, “offering fund administration to private equity funds, cryptocurrency funds, hedge funds, venture capital, fund of funds, real estate, and direct lending funds.”

STP Chief Executive Officer Patrick Murray, stated:

“This acquisition will bring additional clients and funds to STP, allowing us to be more intentional about growing our fund administration business across all asset classes and funds. By combining Tower’s services along with our innovative technology and high-touch approach, we will deepen our existing capabilities. This is an exciting opportunity within the broader fund space for us to do what we do best at STP, which is to improve operations and the client experience through technology, more streamlined functionality, and proven expertise.”

As alternative investing has become increasingly popular, the acquisition of Tower “strengthens STP’s position in the alternative investing space.”

The acquisition allows STP to bring its operational services and tech to the fund managers who require them. STP will continue to “heavily invest in technology solutions for fund managers including further enhancing its automated fund subscription solution,” the update noted.

Through Cloud-powered outsourced trading, compliance services, and automated subscription processes, Tower Fund Services clients will “enjoy quicker access to data and workflows in an advanced technology and operations ecosystem — the hallmarks of STP.”

Tower Co-Founders Vincent Sarullo and Kinjal Amin will help “guide the successful integration of the business into STP and will offer their extensive expertise and leadership experience to the process, ensuring a smooth transition.”

Sarullo added:

“As we evaluated the merits of various partnership opportunities, we were drawn to STP’s strong culture, world-class technology and unwavering dedication to client service. Our success in the fund administration arena strengthens STP’s capabilities here and the synergies are palpable. And for Tower clients, STP’s BluePrint platform and operational service will bring efficiencies that will drive a greater client experience. The joining of our two firms together benefits our collective clients, as well as our teams, and we look forward to this exciting new chapter for our business.”

STP will actively pursue mergers and acquisitions that will “advance the organization’s commitment to augmenting its global offering, in keeping with the strong culture and ethos of client service already in place.”

Earlier in 2021, STP added veteran alternative investment outsourcer Jim Cass, previously a Senior VP and MD at SEI, as a board advisor to help “guide STP in this area.”

Cass was a part of SEI for almost 30 years “before he founded Hidden Crest LLC, an alternative investment services consulting firm.” In this role at STP, Cass will offer organizational and strategic planning; counsel “on existing products and services as well as potential opportunities; coaching and mentorship to senior leadership; and review and support regarding any possible merger and acquisition activity.”

Cass remarked:

“With first–hand experience in helping SEI grow over the decades while I was there, I know what STP is capable of becoming in the alternative fund outsourcing arena and look forward to guiding them there. The acquisition of Tower Fund Services and gaining these additional capabilities such as cryptoasset funds is a great step in that direction.”

Since 2008, STP has served institutional, fund, emerging and wealth managers as well as plan sponsors and family offices “across the globe as a custom solution providing everything related to front, middle and back-office operations.”

STP’s tech-powered services platform “addresses core financial services firms’ needs including: investment operations outsourcing; data reconciliation; trading and settlements; fund services; performance reporting and measurement; compliance oversight; internal control management and more.”

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